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MUMBAI | KOLKATA: The Supreme Court will, on Wednesday, hear ArcelorMittal’s application contesting an order passed by the appellate branch of the bankruptcy court, thus extending the deadline for payment of dues by the European steelmaker for KSS Petron and Uttam Galva Steels.

The deadline otherwise ended on Tuesday. Essar Steel lenders will accordingly wait for the top court’s ruling on the eligibility of the bidders Numetal and Arcelor before taking a call on the bids. The bench comprising Chief Justice Dipak Misra, Justices AM Khanwilkar and DY Chandrachud will hear the matter, news agencies reported.

KSS Petron and Uttam Galva are in bankruptcy resolution and owe Rs7,000 crore. The National Company Law Appellate Tribunal (NCLAT) on Friday said that Numetal’s second bid was eligible while directing ArcelorMittal to clear dues of its other group companies by September 11 to become eligible.

The judgement will be critical for Arcelor to ascertain its eligibility as a bidder in the race for Essar Steel. ArcelorMittal on Monday revised its bid to Rs 42,000 crore while Numetal, backed by VTB Bank of Russia, has bid at Rs 37,000 crore.

Anil Agarwal’s Vedanta has submitted a bid at Rs 34,000 crore. Lenders have initiated insolvency proceedings for recovery of `49,000 crore dues from Ruia’s promoted Essar Steel. With a COC meeting scheduled on Wednesday, all eyes are now focused on the Supreme Court hearing.

ArcelorMittal, which improved its offer to Rs 42,000 crore, on Monday and committed to pay Rs 7,000 crore dues of the two companies, had filed the appeal later that evening seeking extension of time for payment of Rs 7,000 crore dues for KSS Petron and Uttam Galva Steels.

It needs to pay the amount to be eligible to bid for Essar Steel. An ArcelorMittal spokesperson said: “The revised offer includes a commitment to repay Uttam and KSS Petron debts in full. It, therefore, represents a compelling opportunity for Indian state banks to recoup the maximum amount of money possible.”

Meanwhile, Alok Dhir of Dhir & Dhir Associates said: “Bankers would like to wait it out until the top court order. However, the law cannot be subject to conditions. In this case, ArcelorMittal says it will deposit the money only if it gets the scheme in its favour…Since they have put the money in an escrow account, all they needed to do was to transfer the money.”